Moreover, the RSI and the MACD lines are providing bullish signals
indicating that the index has enough steam to accelerate further.
There will be some consolidation over the next two to three days and prices will zoom to new highs once it breaches the Rs31,500 level." A rising channel is a continuation pattern where prices show bullish signals
along a channel marked by two parallel lines.
“The tyre industry in Saudi Arabia has been showing bullish signals
in terms of market revenues during FY'11 propelled by the growth in automobile sales volume in the nation.
"We may be reaching the upper limits of where markets are willing to push this in the absence of any really strong bullish signals
for the global economy," said Simon Wardell, an analyst at Global Insight.
Some traders look for a move above 50 to confirm bullish signals
or a move below 50 to confirm bearish signals.
Of course, any breakout needs to be followed by additional bullish signals
as the index progresses -- otherwise the advance is again prone to failure.
Since hitting 13-year lows in mid-January, oil prices have rallied by a remarkable 72% on the back of several bullish signals
including the production freeze talks, supply outages among OPEC members, falling US shale production and a depreciating US dollar.
After Monday's close, this week's trend may go sideways to upwards, based on the bullish signals
from moving average convergencedivergence (MACD) and DMI (directional movement index, said Luis Limlingan, managing director at local stock brokerage Regina Capital Development Corp.
Moreover, the RSI and the MACD lines are giving bullish signals
suggesting a further upside with no immediate trend reversal signs.